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Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (6164)	4/28/1999 8:02:00 PM
From: Paul Lee	Respond to of 9236

What a research team!

To: Scrapps who wrote (6164)	4/29/1999 9:04:00 AM
From: Paul Lee	Read Replies (2) \| Respond to of 9236

Hey team try this one out. Since LU is buying Ascend and will go with AWRE on that, remember ALA bought DSC (digi) who had a deal with AWRE. So, what will DSC's switches be using. On further step, ALA is on a buying spree, how about ALA buying AWRE and locking up the market for 90% of the technology? Just an early morning thought? Are u listening ALA CEO Serge Tchuruk?

To: Scrapps who wrote (6164)	4/29/1999 9:18:00 AM
From: Michael F. Donadio	Read Replies (1) \| Respond to of 9236

While many are aware of the potential patent infringements by Aware, here it is in black and white. Its hard to believe that at some point TXN/Amati will not prevail and/or make a further claim. From Edgar on-line 10-K405 In 1996, Aware received letters from two companies, Amati Communications Corporation (since acquired by Texas Instruments Inc.) and Telebit Corporation (since acquired by Cisco Systems, Inc), each asserting that it owns certain U.S. and foreign patents that are necessary for products that comply with the American National Standards Institute standard for ADSL, claiming that Aware's ADSL technology would infringe such patents, and offering Aware the opportunity to enter into a license agreement with respect to such patents. Aware understands that Analog Devices received similar letters. Aware reviewed the Amati and Telebit patents and received an opinion of its patent counsel, Cesari and McKenna, based upon Aware's oral description of its technology, to the effect that Aware's ADSL technology does not infringe any valid claim of any of the Amati and Telebit patents. Based upon this opinion, Aware believes that it does not require a license under the Amati or Telebit patents in order to conduct its proposed business. Aware has also received notice from Amati of the pendency of various patent applications which Amati considers to be pertinent to the design and operation of ADSL modems. Unless and until a patent actually issues, there can be no infringement, and Aware has not examined any such patent applications or received an opinion of patent counsel with respect thereto. Aware has not received any further communication from either Texas Instruments/Amati or Telebit regarding the foregoing since 1996. In 1998 and 1999, Aware received letters from Bell Atlantic asserting that it owns a U.S. patent that it believes is necessary for companies that manufacture and sell ADSL equipment, and offering Aware the opportunity to enter into a license agreement with respect to such patent. Aware reviewed the Bell Atlantic patent and received an opinion of its patent counsel, Cesari and McKenna, to the effect that Aware's ADSL technology does not infringe any valid claim of the Bell Atlantic patent. Based upon this opinion, Aware believes that it does not require a license under the Bell Atlantic patent in order to conduct its proposed business. 15 Despite these opinions and the passage of time, there can be no assurance that a court to which the issue is submitted would not find that Aware's ADSL technology infringes the Amati, Telebit, or Bell Atlantic patents, nor that Amati, Telebit, or Bell Atlantic will not assert infringement again in the future. If Aware is found to have infringed any of the patents, Aware could be subject to substantial damages and an injunction preventing it from conducting its business, and Aware's business could be materially and adversely affected. Although Amati, Telebit, and Bell Atlantic have offered to license their patents and their patent applications to Aware, there can be no assurance that any license would be available on acceptable terms should Aware choose to pursue such license or be found to infringe such patents. In addition, there can be no assurance that other third parties will not assert infringement claims against Aware in the future, that these assertions or those of Amati, Telebit and Bell Atlantic will not result in protracted and costly litigation, or that Aware would prevail in any such litigation or be able to license any valid patents from third parties on commercially reasonable terms. Further, such litigation, regardless of its outcome, could result in substantial costs to and diversion of effort by Aware. Litigation may also be necessary to enforce Aware's intellectual property rights. Any infringement claim or other litigation against or by Aware could materially and adversely effect Aware's business. All the best, Michael P.S. I have been long on Aware for several years, but do find these to be ligitimate concerns.